Economic policy

This section reports on economic policy initiatives of the Czech government, the EU, and other entities that have a direct impact on the competitiveness of the country. It also includes information on economic priorities of the AmCham and other leading associations.

Spotlight issue

23rd March 2020 / Economic policy / Macroeconomic Indicators, Economic Growth

March: the month of interest rate cuts

We expect the Czech National Bank to cut its key repo rate by a further 50bp at its monetary policy meeting on Thursday, mainly due to the still-worsening growth outlook for the Czech economy as a result of the COVID-19 pandemic. The koruna could therefore depreciate further vs the euro, prompting the CNB to react. We do not expect it to implement quantitative easing measures, however.
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19th March 2020 / Economic policy / Employment and Social Affairs

AmCham Comments on Government Programs to prevent unemployment from temporary, severe loss of revenue caused by the coronavirus

Our view is that the strict containment measures adopted by the Czech Republic are necessary not only to contain the spread of disease in order to prevent a breakdown in the healthcare system and consequent greater loss of life, but also to avoid the longterm economic damage a significant outbreak could cause. Therefore, we propose the government pursue immediate economic measures that will mitigate the damage of virus and its containment and then prepare regulatory changes that can make recovery swifter and more sustainable. 1) Pass some form of the Ministry of Social Affairs proposal by March 20. 2) Consider introducing renewable time limits and a salary cap for government contributions. 3) Consider moving from a kurzarbeit-style program to direct company payments if the containment period lasts more than a month.
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18th March 2020 / Economic policy / Macroeconomic Indicators, Economic Growth

IMF: Policy Action for a Healthy Global Economy

While quarantining and social distancing is the right prescription to combat COVID-19’s public health impact, the exact opposite is needed when it comes to securing the global economy. Constant contact and close coordination are the best medicine to ensure that the economic pain inflicted by the virus is relatively short-lived.
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Members of the American Chamber of Commerce in the Czech Republic